Dollar Holds Near 100 as FX Intervention Limits Show

The broad dollar index was last at 99.68, little changed on the latest reading, with its 50-day moving average at 100.0 and the 200-day average at 99.14. Conventional technical indicators show the index still trading near the upper end of its recent range, with RSI readings around 61 and the MACD above its signal line, suggesting the dollar has steadied after a brief pullback.

In Japan, the message from Washington that the amount spent on intervention was “minor” reinforces the view that authorities can signal resolve, but not easily dictate exchange rates without sustained firepower. For investors, that keeps the yen-sensitive trade in focus, particularly for exporters, importers and global funds that hedge Japan exposure through the dollar-yen pair.

The backdrop is broader than Tokyo. Guatemala’s family remittances rose 5.4% to $17.774 billion, a reminder that foreign-currency inflows remain a powerful counterweight in smaller economies and can help cushion exchange-rate pressure heading into the year-end remittance season. Those flows support domestic spending and reserves, but also show how much currency stability depends on recurring external money rather than intervention alone.

For markets, the key takeaway is that coordinated official action can buy time, not necessarily turn the trend. If dollar strength resumes or regional currencies come under pressure, traders will watch for further policy responses, reserve usage and any signs that intervention is becoming more frequent — and more costly.